United States: Shared office firm WeWork has filed for bankruptcy in the US. It comes as the company’s share value dropped by 98.5 percent this year because of the costly leases and cancellations of contracts as more employees worked from home during the COVID-19 pandemic.
The firm, which was once valued at $47 billion, said it will “remain open and operational and the Company will continue to provide its signature member experience.”
According to the data, the firm is now worth less than $50 million. WeWork, headquartered in New York, will face consequences following the bankruptcy.
“WeWork’s locations outside of the U.S. and Canada are not part of this process. WeWork’s franchisees around the world are similarly not affected by these proceedings,” the company remarked.
Mr. David Tolley, CEO of WeWork, stated that, “It is the WeWork community that makes us successful. Our more than half-million members around the world turn to us for the best-in-class spaces, hospitality, and technology that our 2,500 dedicated employees and valued partners provide. WeWork has a strong foundation, a dynamic business, and a bright future.” WeWork has billions of dollars in liabilities, as per the statement.
“Now is the time for us to pull the future forward by aggressively addressing our legacy leases and dramatically improving our balance sheet,” Mr. Tolley added.
“We defined a new category of working, and these steps will enable us to remain the global leader in flexible work. I am deeply grateful for the support of our financial stakeholders as we work together to strengthen our capital structure and expedite this process through the Restructuring Support Agreement. We remain committed to investing in our products, services, and world-class team of employees to support our community,” Mr. Tolley remarked.
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